How Did the Japanese Yen Trade in 2008?
The global economic turmoil and the subsequent unwinding of carry trades made the Japanese Yen, the best performing currency of 2008. The Yen rose more than 35 percent against the British pound, Australian and New Zealand dollars and hit a 13-year high against the US dollar. Unlike some of the other currencies, which may have seen wild swings throughout 2008, the Yen consistently strength throughout the year. Unfortunately the remarkable rally in the Yen will also be a big reason why Japan could underperform, its peers next year. Japan Could be the Worst Performing Country in 2009 Of all the countries in the developed world, Japan will probably have the toughest time in 2009 because of the strength of its currency. As an export dependent nation, Japan typically runs a trade surplus but this year we have seen the country report trade deficits, which is extremely rare. Toyota, the world’s largest carmaker is the highest profile casualty of Yen strength. The automaker reported their first
